Labor Department's $36M Bamberg JCC operation contract awarded to Dynamic Educational Systems Inc

Contract Overview

Contract Amount: $36,258,656 ($36.3M)

Contractor: Dynamic Educational Systems Inc

Awarding Agency: Department of Labor

Start Date: 2005-08-01

End Date: 2011-09-19

Contract Duration: 2,240 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Other

Official Description: OPERATION OF TH BAMBERG JCC

Place of Performance

Location: BAMBERG, BAMBERG County, SOUTH CAROLINA, 29003

State: South Carolina Government Spending

Plain-Language Summary

Department of Labor obligated $36.3 million to DYNAMIC EDUCATIONAL SYSTEMS INC for work described as: OPERATION OF TH BAMBERG JCC Key points: 1. Contract value represents a significant investment in vocational training services. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of over 18 years indicates a long-term need for these services. 4. The specific NAICS code (611519) points to specialized technical and trade school services. 5. The contract's geographic focus is South Carolina, impacting local workforce development.

Value Assessment

Rating: fair

The total contract value of $36.26 million over its nearly 20-year lifespan averages to approximately $1.9 million per year. Benchmarking this against similar vocational training contracts is challenging due to the long duration and specific nature of the services. However, the consistent funding over an extended period suggests a stable, albeit potentially high, annual cost for maintaining the Bamberg Job Corps Center's operations. Without more granular data on the services provided and the number of trainees, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this long-term service contract. While multiple bidders participated, the extended duration and specialized nature of operating a Job Corps Center might limit the pool of highly qualified and interested parties.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better service quality. The fact that multiple companies vied for this contract suggests that taxpayers likely received a fair price, as Dynamic Educational Systems Inc. had to offer a competitive bid.

Public Impact

The primary beneficiaries are individuals seeking vocational training and employment services through the Job Corps program. The contract supports the operation of the Bamberg Job Corps Center, delivering essential training and support services. The geographic impact is concentrated in South Carolina, providing local economic and workforce development opportunities. The contract has implications for the local workforce by providing jobs for instructors, administrators, and support staff at the center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 18 years) may reduce flexibility to adapt to changing training needs or market demands.
Potential for contractor complacency over such an extended period without regular re-competition.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality and effectiveness.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Long-term contract provides stability for the service provider and ensures continuity of services for trainees.
The contract supports a vital federal program (Job Corps) aimed at workforce development.

Sector Analysis

The contract falls within the 'Other Technical and Trade Schools' sector (NAICS 611519), which is part of the broader education and training services industry. This sector is crucial for equipping individuals with specialized skills demanded by the labor market. The federal government, through programs like Job Corps, is a significant purchaser of these services to address workforce development needs, particularly for disadvantaged youth. Comparable spending benchmarks would typically involve analyzing annual operating costs of similar educational institutions or government-funded training centers.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses, and larger, more established companies likely competed. There is no information on subcontracting plans, so the impact on the small business ecosystem is unclear, but it is unlikely to have direct positive implications unless Dynamic Educational Systems Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for Job Corps centers typically falls under the Department of Labor's Employment and Training Administration. While specific oversight mechanisms for this contract are not detailed, federal contracts of this magnitude and duration are generally subject to regular performance reviews, financial audits, and compliance checks. The Inspector General's office within the Department of Labor would likely have jurisdiction for investigating any fraud, waste, or abuse related to this contract. Transparency is usually maintained through contract award databases and reporting requirements.

Related Government Programs

Job Corps Program
Workforce Innovation and Opportunity Act (WIOA) Programs
Federal Job Training Programs
Department of Labor Contracts

Risk Flags

Long contract duration
Moderate competition level

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $36.3 million to DYNAMIC EDUCATIONAL SYSTEMS INC. OPERATION OF TH BAMBERG JCC

Who is the contractor on this award?

The obligated recipient is DYNAMIC EDUCATIONAL SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $36.3 million.

What is the period of performance?

Start: 2005-08-01. End: 2011-09-19.

What is the historical spending pattern for the operation of the Bamberg Job Corps Center?

The provided data reflects a single definitive contract awarded in August 2005 with an end date in September 2011, totaling $36,258,656. This suggests that prior to this award, operations may have been under different contracts or funding mechanisms. The duration of this specific contract (over 6 years) indicates a significant, long-term commitment. To understand the full historical spending pattern, one would need to examine contract awards preceding and potentially following this period for the same facility or similar services, looking at annual expenditures and trends over time to identify any significant increases or decreases in investment.

How does the annual cost of this contract compare to other Job Corps center operations?

The total contract value of $36.26 million over its 2240-day (approximately 6.1 years) duration averages to roughly $5.95 million per year. Comparing this to other Job Corps centers requires access to data on the operating costs of similar facilities. Factors influencing cost include the center's size, student capacity, geographic location (cost of living, labor rates), and the specific mix of training programs offered. Without a benchmark of average annual operating costs per Job Corps center or per student served, it's difficult to definitively state whether this contract's annual cost is high, low, or average. Further analysis would involve normalizing costs by student capacity or program intensity.

What specific services are included under the 'OPERATION OF TH BAMBERG JCC' contract?

The contract title 'OPERATION OF TH BAMBERG JCC' implies comprehensive management and operational services for the Bamberg Job Corps Center. This typically includes student recruitment and outreach, academic and vocational training instruction, career counseling and placement services, health and wellness support, facility maintenance, and administrative functions. Job Corps centers aim to provide comprehensive services to disadvantaged youth, helping them complete high school, obtain job training, and find employment. The specific details of the service delivery would be outlined in the contract's Statement of Work (SOW), which is not provided here.

What is the track record of Dynamic Educational Systems Inc. in managing federal contracts, particularly Job Corps centers?

The provided data indicates that Dynamic Educational Systems Inc. was awarded this specific contract for the operation of the Bamberg Job Corps Center. To assess their overall track record, one would need to investigate their history with other federal contracts, especially those related to education, training, and youth services. Key areas to examine would include past performance evaluations, any instances of contract disputes or terminations, on-time delivery rates, and compliance history. Information from sources like the Federal Procurement Data System (FPDS) or the Government Accountability Office (GAO) bid protest decisions could provide further insights into their performance and reliability as a federal contractor.

What are the potential risks associated with a contract of this duration (over 18 years)?

A contract duration of 2240 days (over 6 years based on the award dates provided, though the prompt implies a longer duration) presents several risks. Firstly, it reduces the government's flexibility to adapt to changing economic conditions, workforce needs, or technological advancements in training methodologies. Secondly, long-term contracts can sometimes lead to complacency on the part of the contractor, potentially impacting service quality or innovation, as the incentive to compete aggressively diminishes. Thirdly, the fixed nature of the contract may not adequately account for unforeseen cost increases (e.g., inflation, regulatory changes) unless escalation clauses are robustly defined. Finally, if the contractor's performance falters significantly, the process of re-competing or transitioning to a new provider can be disruptive and costly.

How does the competition level (3 bidders) impact the price discovery for this contract?

Having three bidders for this contract suggests a moderate level of competition. While more than a sole-source or limited competition scenario, it might not represent the most robust price discovery achievable with a larger pool of bidders. With three competitors, Dynamic Educational Systems Inc. likely had to submit a competitive bid to win, preventing excessively high pricing. However, a higher number of bidders (e.g., 5+) often intensifies competition further, potentially driving prices down more significantly as companies vie more aggressively for the award. The specific nature of operating a Job Corps center might inherently limit the number of qualified bidders, making three a reasonable outcome in this specialized market.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: BAMBERG JCC

Offers Received: 3

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Exodyne Inc. (UEI: 073512048)

Address: 8433 N BLACK CANYON HWY STE 184, PHOENIX, AZ, 85021

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,359,990

Exercised Options: $36,323,399

Current Obligation: $36,258,656

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline